Australian Treasurer Joe Hockey Questions High Price of iPhone 6, Other Goods in Australia

Australian Treasurer Joe Hockey has asked the country's Tax Office to address "location specific profits" generated by international technology companies like Apple that was found to charge Australian customers 9 percent more for the new iPhone 6 than their American counterparts.

According to the Australian Financial Review, Australians buy their latest Apple tech at $68 or $82 more before Goods and Services Tax (GST) than American customers. A parliamentary inquiry in 2013 was told that mark-ups set by technology companies will result in products costing 30 percent more. Apple Australia vice-president Tony King attended the inquiry and testified that Apple had the same price for its products around the world, but local factors often influence a retail price difference.

Hockey had urged tax commissioner Chris Jordan earlier in September to intensify efforts in conducting extensive audits of multinational companies that were considered a threat to the country's tax collection system. The Treasurer called the attention of Jordan to address the issue of Australians paying more for gadgets, software, music, games, fashion and sports equipment when compared to Americans.

Meanwhile, the Tax Justice Network has revealed the list of companies who practice "tax burden shifting" to avoid paying high taxes. Companies that dodge taxes simply pass on the burden to ordinary taxpayers. According to the report Who Pays for Our Common Wealth? Tax Practices of the ASX 200, some big companies including Westfield by Frank Lowy do not pay the right tax. The report examined the tax practices of the country's biggest publicly listed companies and found the effective tax rate of the ASX 200 companies was only 23 percent in the 10 years.

Despite the findings of the report, it does not suggest that the companies are engaged in illegal activities to dodge taxes. However, the report does indicate that some corporations may need to explain their tax practices publicly.

Reports said the Australian government has addressed the findings and declared that Australian is working to ensure all companies pay their taxes fairly. A spokesperson from the treasurer's office said the government is implementing domestic policies to ensure companies who profit in the country will also pay the tax.